Hull-Smoothed Candles for Trend Visualization

Summary

This indicator replaces standard open, high, low, and close values with Hull moving averages, then plots the results as custom candles. A separate Hull average of the OHLC4 price determines candle color: rising values color candles green, while flat or falling values color them red. The HMA length for candle prices and the length for color changes can be adjusted independently.

A simple moving average of the close is also plotted; its default one-period setting tracks the current close and can be increased for smoothing. The description presents the custom candles as a way to reduce visual noise and make trends easier to identify, with an appearance somewhat like Heikin-Ashi candles. The document provides the indicator’s calculation rules but no backtest, performance results, or evidence that smoothing improves trading outcomes. As with other smoothed price displays, the plotted candle values differ from actual market OHLC prices, and signals may lag or obscure short-term moves.

Key ideas

• The indicator plots Hull moving averages of open, high, low, and close as custom candles.
• Candle color is based on whether a separately calculated Hull average of OHLC4 rose from the prior bar.
• The candle and color smoothing lengths can be configured independently.
• A close-price simple moving average is included, with a one-period default that follows the close.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.